Ark Invest and 21Shares to Launch Digital Asset ETF Suite

Cathie Wood’s Ark Invest, in partnership with 21Shares, is launching a suite of digital asset ETFs, focusing on Bitcoin and Ethereum futures and blockchain technology.

The suite comprises five ETFs, including ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA) and ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), intend to blend investments in futures contracts with stakes in companies active in the blockchain industry.

These ETFs, aimed to “deliver long-term capital appreciation through strategic investments”, will list on the Chicago Board Options Exchange (CBOE) and are tailored for investors looking to integrate digital assets into their portfolios. However, according to 21Shares, “neither the Funds nor the Underlying ETF invest directly in bitcoin or other digital assets, or maintain direct exposure to ‘spot’ bitcoin.”

21Shares claimed to be the “world’s largest issuer of crypto exchange products (ETPs).” The company has attracted over $1 billion assets under management (AUM), despite that ETPs issued by 21Shares AG are not available in the United States.

Ark Invest currently has six active ETFs available in the U.S., three of which are listed on CBOE.

Ark Invest Buys Block Inc. Shares, Sells Grayscale Bitcoin Trust Shares

Ark Invest, led by Cathie Wood, recently adjusted its portfolio by buying shares in Jack Dorsey’s Block Inc and selling portions of its Grayscale Bitcoin Trust holdings.

Ark’s purchase, involving its flagship ARK Innovation ETF, ARK Next Generation Internet ETF, and Ark Fintech Innovation ETF, purchased 113,326 shares of Block Inc. with a worth of $5.61 million. The transaction was based on Block’s closing price of $49.52 on Nov. 6.

Meanwhile, Ark Invest reduced its investment in the Grayscale Bitcoin Trust on the same day, offloading shares worth $3.76 million with Grayscale closed at $26.95. In addition, Ark Next Generation Internet ETF (ARKW) just sold $1.34 million of GBTC.

Cathie Wood has consistently expressed her interest and confidence in crypto and bitcoin. In Nov. 2022 in a Bloomberg interview, Wood restated her prediction of bitcoin price to reach $1 million by the end of this decade.